Risk management is an important strategy for any business. Silicon Valley businesses can protect themselves from liability with effective indemnification provisions – These provisions can be instrumental to easing the financial burden of a lawsuit against your company. Rather than your company paying for the legal costs of a lawsuit due to one of your business partners, you can obligate your business partners to pay for the legal costs through an indemnification provision. Learn more about the terms and conditions of indemnification and how to protect your business from future legal liability.
How Do I Indemnify My Business?
The first step to drafting an effective legal indemnification is identifying the specific types of liability your business needs to be indemnified from. For example, some businesses, such as theme parks, are based around services which are potentially dangerous to consumers. It is important that these businesses appropriately indemnify themselves against claims by those who use their business facilities. Specifically, theme parks may want to consider obtaining an indemnification in any contract with repair or technician companies providing repair and maintenance to their theme park rides. Professionals with high rates of malpractice claims (such as obstetricians) must also consider the appropriate means for indemnifying themselves against legal claims by patients.
The next step is to consider in what context you need to negotiate and obtain indemnification from other companies. One of the most common areas of business indemnification is in contractual relations. The purchase and sale of goods is often the source of largest financial risk – and therefore greatest legal liability – which a business will incur in its operation. The most direct and effective way to mitigate this risk is by use of detailed, legally-binding provisions for indemnification in the written agreements which govern these transactions. Indemnification provisions must be tailored to specific nature of the transaction. The more generic an indemnification provision is, the less likely it will be able to protect your business from incurring contractual liability. A business contract attorney who is familiar with the specific needs of your business will be able to craft indemnification provisions which are tailored to your needs and have wide-ranging protections for your business. Without such provisions, your business can be forced to bear the risk of loss of contract goods due to negligence in shipping and delivery, acts of force majeure, and other actions which were not the fault of your business.
Experienced Legal Advice for Risk Management
Structure Law Group is here to protect your business by negotiating and drafting effective indemnification provisions in your contracts. We will help you put effective legal procedures in place to ensure that in the event you are sued, you have protection. Call (408) 441-7500 or email firstname.lastname@example.org to schedule your consultation with an experienced Silicon Valley corporate attorney.